描述
The inflation rate measures the increase in the average level of prices, typically assessed using the Consumer Price Index (CPI). It is calculated as an annual percentage change to monitor price fluctuations and variations in the purchasing power of money. An increase in the inflation rate indicates a rise in overall price levels, reducing purchasing power, a phenomenon known as inflation. Conversely, a negative growth rate represents deflation.
In India, the structure of the CPI is heavily weighted toward food, which accounts for approximately half of the index. As food constitutes a significant portion of household consumption, price changes in this sector have a strong impact on overall inflation.
To address inflationary pressures caused by rising energy and food prices, the Reserve Bank of India (RBI) implemented multiple rate hikes between 2022 and 2023. These measures aimed to control inflation and stabilize price levels. For 2024, the RBI has set an inflation target of around 4%, aligning with the International Monetary Fund's (IMF) projections for India's inflation over the next few years. This indicates that inflation in India is expected to remain within a relatively manageable range.